News Bulletin 48 - Week 4 January, 2021

Many economic experts continue to forecast Vietnam’s economy will grow noticeably in 2021, with the latest coming from Standard Chartered Bank which forecast Vietnam’s economy to grow at 7.8% this year with manufacturing driving the growth. Manufacturing sector that will play a large part in economic growth will be electronic components and automobile production.

Last week, it is noticeable that Vietnam became the sixth largest trading partner of China in 2020, up two places compared with 2019, proving a tight economic relationship between the two countries now and in the upcoming years.

The past week spotlight

Vietnam becomes 6th largest trading partner for China

Vietnam's trade with China rose by 14 percent last year to $133.09 billion, making it the latter's sixth largest trading partner.

Its exports to China grew by 18 percent to $48.9 billion, and imports by 12 percent to $84.1 billion, according to the Ministry of Industry and Trade.

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Let’s look at some other related financial and business news during the past week:

1. Vietnam – Rising star in Asia’s shifting supply chains: EIU

A key strength in Vietnam’s business environment is the country’s proliferating membership of free-trade agreements.

A low-cost manufacturing base and internal political stability are among key factors that turns Vietnam into a rising star in the region’s shifting supply chains, the Economist Intelligence Unit (EIU) of the Economist Group stated in its latest report.

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2. LG Electronics intends to sell off smartphone business to Vietnam's Vingroup

Vingroup is one of the most potential buyers for LG Electronics' smartphone business.

South Korea’s LG Electronics reportedly intends to sell off its smartphone business to Vietnam’s conglomerate Vingroup, according to South Korea’s media.

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3. 2021 GDP growth may reach 6.72% in best-case scenario: Conference

Vietnam’s economic growth is projected at 6.17% in 2021 in a base-line scenario and may even reach 6.72% in the best-case scenario, heard a conference held in Hanoi on January 20.

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4. CBRE: HCM City among top preferred cities for cross-border investments in Asia-Pacific

Ho Chi Minh City has been ranked fifth as Asia Pacific investors’ most preferred market for investments by CBRE Group, Inc.

“Ho Chi Minh City has already been on the radar of investors in recent years, especially those who are looking to invest in Southeast Asia, as the city is viewed as having the potential for greater appreciation in property values and higher yields,” said Desmond Sim, Head of Research, Southeast Asia, CBRE.

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5. Thai investment in Việt Nam increases

Data from the Ministry of Planning and Investment showed that Thailand had 40 new registered projects, 23 projects registering for capital adjustment and 100 capital contribution and share purchases in Việt Nam with total registered capital of nearly US$1.8 billion last year.

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6. Vietnam a global bright spot in electronics production

Vietnam stands to benefit from its emergence as a global bright spot in electronics production with some index scores exceeding China and India.

Experts attribute this to lower labor costs and better policy incentives.

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7. RCEP helps Vietnamese agricultural products reach out to the world

The mammoth trade deal Regional Comprehensive Economic Partnership (RCEP) is expected to unlock more export markets for Vietnamese agricultural products, according to insiders.

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8. Five trends identified for real estate market in 2021

While 2020 is believed to have changed the real estate industry, trends in the sector this year are forecast to sustain or be aligned with demand in the market.

Trang Bui, a senior director at JLL Vietnam, said one of the five main trends in 2021 is “city in the city” and “integrated real estate”, which are popular in large-scale projects.

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9. Vietnam one of fastest growing economies amid pandemic: WB

Vietnam’s economic recovery accelerated in the last quarter of 2020, making the country one of the fastest growing economies amid the Covid-19 pandemic, according to the World Bank.

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10. Domestic market must take advantage of e-commerce: minister

The COVID-19 pandemic greatly impacted on commercial activities in domestic and global markets last year, meaning Việt Nam needs solutions to support local businesses to develop the domestic market.

Minister of Industry and Trade Trần Tuấn Anh spoke to Vietnam News Agency about these issues

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